Issue link: https://maltatoday.uberflip.com/i/1513149
10 NEWS 7.12.2023 THE Malta Communications Author- ity (MCA) has announced the intro- duction of new measures governing 'Price Indexation Clauses' in telecoms contracts, some of which become ef- fective with immediate effect. In recent months, several providers have introduced clauses in subscrib- er contracts allowing them to adjust charges or fees based on an objective consumer price index compiled by a public institution. These clauses, referred to as 'price indexation clauses', restrict consumers from terminating contracts without incurring early termination fees upon such adjustments. Providers have the flexibility to modify the contractual conditions of consumer contracts, including the possibility to increase retail prices, by granting consumers the right to termi- nate their contracts without penalties. This matter was central to a ruling by the Court of Justice of the European Union, which Court determined that price adjustments resulting from op- erating a price indexation clause con- tained in a contract, do not constitute a contractual modification warranting the legal requirement to provide con- sumers the right to withdraw from their contract without early termina- tion fees. Key concerns Expressing serious concerns, the MCA highlighted: • Lack of consumer awareness about these clauses. • Potential misunderstandings of their impact. • Uncertainty about total costs throughout the contract period. • Consumer challenges with unpre- dictable increases in fees and charges. • Hindrance to consumers' ability to compare tariff plans, distorting ef- fective competition in the market. On 25 August 2023, the MCA ini- tiated a public consultation on pro- posed consumer protection measures. Submissions were received from six stakeholders, including Consumer Association Malta, Consumer Affairs Council, Office for Consumer Affairs within the Malta Competition and Consumer Affairs Authority, EPIC Communications Limited, GO plc, and Melita Ltd. After careful consideration of stake- holder feedback, the MCA published a Decision Notice on 7 December 2023, mandating requirements for providers of internet, TV, mobile, and fixed te- lephony services. Noteworthy requirements include: • Maximum contract duration of contracts with 'price indexation claus- es' limited to six (6) months, effective from 8th January 2024. • Providers may offer plans with a commitment period of up to twen- ty-four (24) months, provided they ex- clude 'price indexation clauses'. • Providers must obtain explicit consent from consumers before con- cluding contracts with 'price indexa- tion clauses,' effective from 8th March 2024. • Enhanced transparency obliga- tions for contracts and websites pub- licising plans with price indexation clauses, effective from 8th March 2024. In relation to existing contracts The MCA addressed existing con- tracts with price indexation clauses (i.e. contracts entered into before the publication and/or coming into force of the Decision): • After six (6) months from the contract signing date, consumers have the right to terminate contracts with- out incurring early termination fees if providers implement price changes based on the indexation clause. • While enforcing this requirement within the the first six (6) months from the contract signing date poses some regulatory challenges, the MCA strongly encourages providers to of- fer consumers the option to rescind contracts without penalties in case of price revisions due to indexation clauses, made during this period. The Authority considers that such a volun- tary undertaking by providers would be consistent with the objective of en- suring fair and transparent contractu- al practices in the sector. Extended consumer protection measures The consumer protection measures listed in the Decision Notice have been extended to cover also end-us- ers that are microenterprises, small enterprises, or not-for-profit organ- izations unless such end-users have explicitly agreed to waive all or parts of those provisions. MCA introduces new measures on 'Price Indexation Clauses in Telecoms Contracts FOCAL Maritime Services and Green- waveshipping.mt have successfully re- newed their quality accreditation in line with the international ISO 9001:2015 standard provided by Bureau Veritas Certification. is certification represents a signif- icant milestone for Focal Maritime, a leading Maltese shipping and logistics company, underscoring its commitment to continuous improvement and adher- ence to globally recognised best prac- tices in quality management. e stand- ard, which is a global benchmark in this field, offers direction to companies and organisations seeking to guarantee the consistent fulfilment of customer needs with their products and services, aiming for continuous improvement in quality. is is the 14th year since Focal Mar- itime has been originally certified, having originally been accredited the ISO9001:2008 standard certification in 2010. is is a testament to the compa- ny's efforts to strive to improve its service offering. To achieve this objective, Focal Maritime seeks to broaden and tailor its services according to both client needs and the constantly evolving – and in- creasingly challenging – landscape of the maritime and logistics sectors. On a reg- ular basis, it also holds surveys amongst its client base to seek areas for potential improvement. Achieving this involves ongoing training and motivation for all employees, whose collaborative efforts are fundamental in ensuring client sat- isfaction. "We're proud to have secured ISO 9001:2015 certification, affirming our relentless focus on quality and customer satisfaction," said Godwin Xerri, Man- aging Director of Focal Maritime. "is certification validates our ongoing ef- forts to refine our processes, including our internal governance, administrative and operational aspects, ensuring we not only meet but exceed our clients' expec- tations. Such an accreditation is a testa- ment to our team's hard work and com- mitment to excellence across all facets of our operations", he added. Greenwaveshipping.mt, which repre- sents various established shipping lines in Malta, had been accredited with ISO 9001 and has also been re-certified since. e company's General Manager, Anton Xerri, explained that: "this certification is crucial with regards to the business relationship with our shipping line prin- cipals as it confirms that the company adheres to industry best practices and ensures consistent service quality that meets customer expectations". e Focal Maritime Group also intends to integrate companies within its struc- ture under these certifications in the near future. Focal Maritime Services and Greenwaveshipping.mt secure quality international accreditation